Friday, 6 November 2026 | Thailand, ASEAN and Global Markets
Today’s briefing examines strong quarterly earnings from Thailand’s GULF, a proposed automotive trade-in programme, Indonesia’s accelerating economic growth, a sharp technology-led sell-off across Asian stock markets and record portfolio withdrawals from emerging markets.
GULF posts 28% profit growth to THB9.29 billion as power generation and digital infrastructure expand
Gulf Development (Gulf Development) reported third-quarter 2026 net profit attributable to shareholders of THB9.289 billion, up 28% year on year, as stronger gas-fired power generation, renewable energy operations and telecommunications earnings supported its performance. Total revenue increased 75% to THB52.809 billion, while core profit rose 24% to THB9.045 billion. Thailand Business News: Companies coverage. KAOHOON INTERNATIONAL
Key points
- Net profit increased 28% to THB9.289 billion, while core profit rose 24% to THB9.045 billion.
- Revenue reached THB52.809 billion, up 75%, supported by energy operations and a 16% increase in profit contribution from AIS to THB4.443 billion.
- The company maintained its 2026 revenue and EBITDA growth guidance of 12–15%, with four additional solar and solar-plus-storage projects totalling 373 MW expected to begin operations in November and December.
The energy business remained the principal growth driver. Gulf Pluak Daeng’s average power-generation load factor increased to 72% from 45% a year earlier, reflecting higher electricity sales to the Electricity Generating Authority of Thailand. Its US-based Jackson Generation project also benefited from rising electricity demand associated with data centres, increasing its contribution to core profit by 67% to THB932 million.
Renewable energy capacity is expanding rapidly. GULF now operates 14 domestic solar and solar-plus-battery-storage projects with combined installed capacity of 1,379 MW, compared with five projects totalling 532 MW a year earlier. The company also reported that its digital business returned to profitability following the full operation of its GSA01 data centre in June. Its expansion builds on the earlier financing programme covered by Thailand Business News in ADB and GRE’s US$350 million green-energy financing agreement.
The company’s results also illustrate the increasingly close relationship between electricity demand and digital infrastructure investment. Thailand Business News examined this structural issue in ASEAN’s data-centre boom and its implications for energy sustainability. GULF’s performance demonstrates how companies with established power-generation assets can benefit from growing computing demand, although expansion requires substantial capital expenditure and careful management of debt and energy costs.
Why it matters: GULF’s results provide an important indication of how Thailand’s energy and digital-infrastructure sectors are benefiting from AI investment. The expansion of renewable generation and data-centre capacity could become increasingly important drivers of corporate earnings, electricity demand and industrial investment.
Thailand considers pickup truck trade-in programme and tougher local-content rules to revive automotive manufacturing
Thailand’s Finance Ministry is considering a trade-in programme for older pickup trucks and commercial vehicles as part of a broader effort to revive automotive demand and accelerate the transition towards cleaner transport. Finance Ministry Permanent Secretary Lavaron Sangsnit confirmed on 5 November that the government is also preparing higher taxes, to be introduced in approximately three years, on vehicles assembled domestically that fail to meet local-content requirements. Thailand Business News: Trade coverage.
Key points
- The proposed trade-in scheme will primarily target older pickup trucks and larger commercial vehicles, rather than passenger cars.
- Replacement vehicles would not necessarily need to be fully electric, but would have to comply with alternative-energy policy requirements, including support for B20 biodiesel.
- The Finance Ministry plans to introduce higher taxes in three years for locally manufactured vehicles that fail to meet domestic-content requirements.
The proposal reflects the difficulty of electrifying Thailand’s commercial vehicle fleet. While earlier EV 3.0 and EV 3.5 incentive programmes helped accelerate passenger-car electrification, pickup trucks and heavy vehicles remain more difficult to convert because of their operating requirements, payload capacity and charging infrastructure needs. The government is therefore considering a broader range of alternative-energy technologies rather than relying exclusively on battery-electric vehicles.
Under the proposed programme, older vehicles would be scrapped and dismantled through domestic recycling facilities. The Excise Department has submitted the proposal for consideration by the relevant loan-screening committee, with further deliberations expected within one to two weeks. The final budget, eligibility requirements and financing conditions have not yet been approved. Money & Banking Magazine
The proposed local-content tax changes are particularly significant for automotive manufacturers and component suppliers. Thailand Business News previously reported on the government’s decision to raise imported EV excise taxes to 35% to encourage local production. Earlier, the Board of Investment introduced additional incentives for manufacturers meeting domestic sourcing requirements in its local-content incentive programme for EV and electronics production. Together, these measures indicate a more interventionist industrial strategy.
Why it matters: Thailand’s automotive industry accounts for a substantial share of manufacturing employment, exports and industrial output. The proposed programme could support pickup truck sales and domestic suppliers, but its effectiveness will depend on accessible financing, commercially viable replacement vehicles and clearly defined local-content requirements.
Indonesia’s economy accelerates to 5.47% growth as exports and household spending outperform expectations
Indonesia recorded economic growth of 5.47% year on year in the third quarter of 2026, accelerating from 5.29% in the previous quarter and exceeding the 5.18% forecast in a Reuters poll. Official figures released on 5 November show that stronger exports, resilient household consumption and continued investment helped Southeast Asia’s largest economy maintain its expansion despite weaker investor sentiment and uncertainty surrounding government fiscal policy. Thailand Business News: Indonesia coverage.
Key points
- GDP expanded 5.47% year on year and 1.59% quarter on quarter in the third quarter.
- Exports of goods and services grew 4.59%, while household consumption increased 5.04% and government spending rose 8.95%.
- The government expects full-year growth of 5.4–5.5%, potentially the strongest annual expansion since 2013.
The external sector provided an important contribution to the improvement. Exports of palm-oil products and increased international tourism supported the country’s external balance. Import growth slowed to 7.31% from 8.82% in the second quarter, helping improve the contribution of net exports to economic activity. Household consumption, which accounts for approximately half of Indonesia’s GDP, remained relatively stable, expanding 5.04%.
Manufacturing, trade and construction continued to support the economy, while government expenditure grew 8.95%, substantially slower than the nearly 16% increase recorded in the previous quarter. Investment in inventories also increased significantly, particularly for unsold vehicles. Economists suggested that some of this accumulation could reflect precautionary stockpiling amid uncertainty over energy and food supplies. Wildfires and haze also disrupted activity in certain provinces.
Despite the strong headline result, investors remain concerned about Indonesia’s fiscal direction, policy consistency and currency stability. Bank Indonesia has previously raised its policy rate by a cumulative 100 basis points between May and June to support the rupiah, while subsequently adjusting reserve requirements to support economic activity. Thailand Business News previously explored the country’s investment prospects in A Comprehensive Guide to Business Opportunities in Indonesia 2026 and its growing infrastructure opportunities in Indonesia’s renewable-energy investment market.
Why it matters: Indonesia’s growth performance reinforces its position as one of ASEAN’s principal economic engines. Strong consumption and manufacturing provide opportunities for regional exporters and investors, although maintaining momentum will require stable monetary conditions, continued investment and predictable fiscal policy.
Asian stock markets plunge as AI investment fears trigger South Korean circuit breaker
South Korean and other Asian technology markets suffered a severe sell-off on Friday, 6 November, following Wall Street’s largest technology-led decline in more than a year. The KOSPI plunged 8.6% to 4,923.47 in early trading, falling below 5,000 for the first time in nine months and triggering a 20-minute trading suspension. The Nikkei and Taiwan’s benchmark market also experienced substantial losses as investors reassessed the prospects for AI infrastructure spending. Thailand Business News: Markets coverage.
Key points
- South Korea’s KOSPI fell 8.6% to 4,923.47, prompting a circuit breaker at 9:03 a.m. local time.
- Japan’s Nikkei 225 declined approximately 6%, while Taiwan’s TAIEX fell more than 8% in early trading.
- The Nasdaq Composite dropped 5.52% on Thursday, while the Philadelphia Semiconductor Index declined more than 12%, wiping approximately US$3 trillion from S&P 500 market capitalisation.
The losses were particularly severe among semiconductor manufacturers and technology companies. Samsung Electronics (Samsung Electronics) fell approximately 10% in early Korean trading, while SK hynix (SK hynix) lost around 13%. The declines followed heavy selling in US semiconductor shares and renewed concerns over the profitability of the enormous investments being made in AI computing infrastructure.
Political uncertainty added to the pressure. Investors are concerned that Democratic gains in the US midterm elections could lead to stricter regulation of AI data-centre construction, potentially slowing infrastructure expansion. This comes at a time when investors are already questioning whether the revenue generated by AI applications will justify the hundreds of billions of dollars committed to data centres, advanced processors and supporting infrastructure. The sharp movements also suggest that crowded investment positions and leveraged trading have amplified the sell-off.
The reversal is particularly striking after the optimism surrounding the AI sector in late October. Thailand Business News previously reported on Anthropic’s S-1 filing and the resulting Asian technology-stock rally. Its earlier analysis of AI-related uncertainty in Asian markets highlighted the risks associated with valuations, regulation and infrastructure investment. The current correction reinforces the importance of separating sustainable earnings growth from speculative market expectations.
Why it matters: Thailand’s electronics exporters, semiconductor suppliers and data-centre investment projects are increasingly exposed to global technology-sector sentiment. A sustained correction could delay investment decisions and weaken regional equity valuations, even if long-term demand for AI infrastructure remains intact.
Emerging markets suffer US$33.8 billion capital outflow as investors retreat from Asian equities
Foreign investors withdrew a net US$33.8 billion from emerging markets during October, the largest monthly outflow since March, according to the Institute of International Finance’s November Capital Flows Tracker released on 5 November. The withdrawal was driven primarily by equity-market selling in Asia, particularly Taiwan and South Korea, as investors reduced exposure to technology stocks following substantial gains earlier in the year. Thailand Business News: Markets coverage. Institute of International Finance
Key points
- Emerging markets recorded net portfolio outflows of US$33.8 billion in October, compared with US$19.3 billion in September and US$27.4 billion of inflows in October 2025.
- Equity withdrawals reached US$31.7 billion, with emerging Asia accounting for US$28.7 billion of the total outflow.
- Emerging-market equity outflows reached US$127.4 billion during the first ten months of 2026, compared with US$18.5 billion during the corresponding period last year.
Taiwan experienced the largest equity withdrawal, with foreign investors selling US$31.8 billion of shares, the biggest monthly outflow in the IIF’s records dating back to 2000. South Korea recorded US$14.6 billion in equity outflows, while China experienced US$5 billion in equity withdrawals for a fifth consecutive month. Chinese debt markets also recorded US$9.3 billion in withdrawals, their largest monthly outflow since May.
The scale of the withdrawals reflects a combination of profit-taking, technology-sector valuation concerns and country-specific risks. Taiwan and South Korea had enjoyed exceptionally strong stock-market performances during the first nine months of 2026, supported by demand for advanced semiconductors and AI-related equipment. Investors are now reassessing how much future earnings growth is already reflected in share prices. The IIF also cautioned that concerns about AI profitability and expectations of another Federal Reserve rate increase could continue to weigh on emerging-market assets.
There are potential stabilising factors. The IIF noted that softer US Treasury yields and a weaker dollar following the US midterm elections could reduce pressure on emerging-market currencies and financing conditions. However, the latest figures underline how quickly international capital can move when investors reassess risk. Thailand Business News previously examined these changing dynamics in Local Influences and Return Chasing in Emerging Equity Markets and its report on Asian equities attracting foreign investors again after a nine-month selling streak. The latest data show how quickly that earlier recovery in investor appetite can reverse.
Why it matters: Large portfolio withdrawals can weaken emerging-market currencies, increase financing costs and put pressure on equity valuations. For Thailand and ASEAN, restoring foreign investor confidence will depend on stable economic fundamentals, credible policy frameworks and companies capable of delivering sustainable earnings growth.
